Army CWO 3 Lindsey Muller is an AH-64 Apache Longbow pilot who is transitioning from a man to a woman.

"The fact that finally Tricare is going to recognize treatment, that's a huge strain and burden off not just me but thousands and thousands of other soldiers out there," she said.

The change follows the decision in June to allow transgender members to serve in the military. Roughly 7 million retirees and children who use the same health insurance will get many of the same benefits.

The policy comes with some controversy. Transgender advocates fault it because it covers gender-reassignment surgery only for active-duty personnel, not retirees or dependents. A conservative group says the benefits are expensive and lack military purpose.

The Chaplain Alliance for Religious Liberty says "This is a gross misuse of military medical dollars."